Keep an eye on things tonight and get ready for a very volatile week. Watching the PMs over the next few days will not be for the faint of heart. TF
Wow, I've written some stuff over the past few months that has worked out pretty well. I'd say this close from last night's note ranks right up there.
After spiking almost to $50 overnight, silver has been clawed back to a low of $47.80 this morning. We've seen this countless times before since August. It just seems more dramatic because the price is now so high.
It looks like this:
Silver rallies off of a three-day or regular weekend (think back to President's Day as an example) and then plummets as soon as the prop desk monkeys hit their desks at 7:30 EDT. Like clockwork.
In fact, evidence of the coordinated attack is clear when you see that gold and silver were first hit at the exact same freaking moment, 7:35 EDT:
OK, so here's what you need to watch. Silver is going much higher but maybe not today. Again, pattern suggests that in the 2-4 day time period before first notice day, silver sells off as The Cartel attempts to "convince" weaker-handed longs to roll out of the current month. No reason not to think this won't happen again. In fact, as I type, I have no position in silver calls or futures. I'm waiting for this dip.
If I had to guess, the dip will come on the back of a margin increase from the goons at the CME. It won't/can't be a puny little increase, either, as the market will simply shrug it off if it is. No, it will likely be more substantial this time. In fact, you've already got Disinformation Agents like this shill practically begging for one:
All in the name of the greater good. "Please, CME. Save us from an overall market collapse by reining in silver."
So, stay nimble. There are a lot of fresh, new longs in the silver market. They are not grizzled veterans like you and I. IF The EE/CME can get the ball started downward, the weak hands will panic and silver will drop very quickly. I will be waiting for them and I will gladly buy their silver from them at the levels below:
I would first expect support at the point of the gap UP on last nights open, around 46.60. I would give my right arm for a chance to buy some silver at 45.50. (Do you recall that The Wicked Witch gave you that level back on Saturday? http://www.youtube.com/watch?v=WhcFI-vzNXk) It will take a lot of courage to step up and hit the bid there as every douchebag topcaller in the world will already be proclaiming that the "silver bubble has popped".
Regardless, IF I can get a dip to buy, silver should then rally back to and maybe even through $50 by later next week.
So, stay nimble. This might be an event better watched from the sidelines for the next few days as its certainly going to be wild. Much more later. TF